Aside from gathering momentum in the digital space, NFTs are also gaining traction within the corporate realm, with blue-chip organizations and enterprises venturing into the Web3 ecosystem. This interaction marks a new dawn for the global economy, as it has been projected that the global NFT market cap will exceed $7 billion by 2028. However, corporate enterprises are venturing into NFTs from diverse angles, including direct investment in NFT companies, launching marketplaces, and creating custom NFTs, as well as the latest development, NFT stocks. So, grab a mug of coffee, sit back, and learn ‘Everything You Need to Know About NFT Stocks.’
What are NFT Stocks?
A stock is a security representing an individual’s fractional ownership in a company or corporation. An NFT stock is the stock of companies directly involved in the NFT economy. These companies can create/trade NFTs (or NFT-related products), have a public marketplace, or a private auction house where collectors can seamlessly trade NFTs. Acquiring the stock of companies with an interest in the NFT market is another smart way of indirectly investing in NFTs because the shares of these companies will grow bullish as the NFT industry grows.
This novel initiative offers newbie investors a head start or exposure to the NFT realm, allowing them to amass the required knowledge or acclimatize with the NFT landscape before diving into NFTs as a collector. So, as a stock guru with zero knowledge of the decentralized space or NFTs, NFT stocks can be a good entry point in the world of NFTs.
How to Trade NFT Stocks?
NFT stocks are traded like traditional stocks on public stock exchanges. They are issued by public companies directly or indirectly involved in the NFT economy. Such companies are usually licensed by SEC (Security Exchange Commission) before issuing the NFT-related stocks. Meaning that these companies are thoroughly vetted to verify their legitimacy and guarantee dividends for investors. As such, NFT stocks require no special trading skills for professional traders, and can therefore be traded just like regular stocks.
What is the Difference between NFT Stock and Traditional Stock?
Traditional stocks represent an individual’s ownership in a company and can involve various markets or commodities unrelated to NFTs. On the other hand, NFT stocks are issued by companies or organizations that are directly tied to the NFT market. Like NFTs themselves, these stocks are also unique since they represent fractional ownership in NFT-related ventures. Notably, the growth of these stocks is determined by the performance of the NFT market. Some examples of notable NFT stocks include:
Coinbase (COIN)
Coinbase is a notable crypto exchange listed on NASDAQ. Its COIN offering is an example of NFT-related stock with over $20 billion market cap.
Nvidia
Nvidia is a top manufacturer of GPU (Graphics Processing Units). The company is notable for developing integrated circuits used in electronic game consoles in PCs. Nvidia is also involved in NFT-related technology, like cloud engines for avatars in the Metaverse. The company’s technological capabilities will be instrumental in promoting NFTs. NVIDIA stock is also listed on NASDAQ and has a market cap of over $1 trillion.
Shopify (SHOP)
Shopify is a notable Canadian e-commerce company founded in 2006. The company journeyed into the NFT world in December 2021, launching its NFT platform. Furthermore, the company partnered with the National Basketball Association’s Chicago Bulls to release an NFT collection. In January 2023, Shopify expanded its NFT coast, allowing content creators to create, mint, and sell Avalanche-based NFTs via its Venly Shopify merchant app. SHOP stock was listed on NYSE and currently has a market cap worth over $81 billion.
Cloudflare (NET)
Cloudflare is a robust network of servers that offers DDoS mitigation and cloud cyber security for websites. It also has a streaming service and was founded in September 2010. Cloudflare journeyed into the NFT landscape in 2021, allowing content creators to publish the videos as ERC-721, an Ethereum-based NFT. The NET stock was listed on NYSE and had a market cap of over $21 billion.
eBay Inc (EBAY)
eBay is a top American multinational e-commerce company founded in September 1995. The company announced its debut into NFT in 2021 and launched its “Genesis NFT” in partnership with OneOf, a Web 3 platform, in 2022. In June 2022, eBay acquired KnownOrigin, a top NFT marketplace, to broaden its NFT-based commitment. EBAY stock was listed on NASDAQ, with a market cap of over $24 billion.
DraftKings Inc. (DKNG)
DraftKings is a fantasy sports platform founded in 2012. The company launched its NFT marketplace on its website on July 21, 2021, marking its debut in the NFT space. Its marketplace is known for sport collectible NFTs developed on the Ethereum network. DKNG stock was listed on NASDAQ in April 2020, with a market cap of over $14 billion.
Dolphin Entertainment (DLPN)
Dolphin is a PR (Public Relations) agency founded in 1995. Dolphin partnered with the moribund FTX.US in 2021 to create sports and entertainment-related NFT marketplaces. The company also partnered with “The Flower Girls,” an NFT collection designed by Varvara Alay in 2021. In October 2022, Dolphin launched its flagship NFT, “Creature Chronicles,” which sold out in 90 minutes. DLPN stock was listed on NASDAQ and currently has a market cap worth over $26 million.
Takung Art (TKAT)
Takung Art is a Hong Kong-based art company founded in 2009. The company has an online trading platform for arts and NFTS. It is listed on NYSE, and its TKAT stock has a market cap of over $10 million.
What are the Advantages of Investing in NFT Stock?
Alternative Investment Opportunity
NFT stocks offer investors an alternative way to profit from the burgeoning NFT market without prior knowledge of it. As such, companies which understand the nitty-gritty of the landscape manage the investment, allowing people to profit from the NFT market indirectly.
A Multi-Investment Tool
Since users will be investing in companies that diversify into NFTs, it will potentially yield dividends from the company’s core revenue and NFT aspects. Most NFT-related companies that ventured into NFTs usually maintain their base source of income to meet their financial obligations. A vehicle or computer company that diversified into the NFT landscape will still operate its original business, leaving investors who buy their stock to profit from all revenue channels.
The concept of NFT stock offers a novel strategy to invest in corporate companies that diversify into the NFT landscape. This involves investing in NFT-related companies by acquiring their stock without directly trading NFTs. However, extensive research should be conducted before investing in these stocks to avoid investing in the wrong tool or fake companies not licensed by SEC. The above-highlighted NFT stocks are not the only available stocks; others include
- Nike (NKE)
- McDonald Corp (MCD)
- Adidas (Adidas AG)
- Meta (META)
- Defiance NFT ETF (NFTZ)
- Funko (FNKO)
- Zynga (ZNGA)
- ZK International (ZKIN)
- Atari SA (PONGF)
- PLBY Group Inc (PLBY)
- Hall of Fame Resort & Entertainment Company (HOFV)
